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Skanska
Earnings Release • Apr 15, 2024
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Earnings Release
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Q2 2023
Press release, July 21, 2023, 7:30 a.m. CET
We build for a better society.
Interim report, second quarter 2023
Highlights according to segment reporting
- Revenue for the quarter amounted to SEK 39.9 billion (44.8); adjusted for currency effects, revenue decreased 15 percent, following lower sales volumes in Residential and Commercial Property Development.
- Operating income amounted to SEK 1.3 billion (2.4); adjusted for currency effects, operating income decreased 46 percent, due to lower sales volumes in Residential and Commercial Property Development.
- Earnings per share amounted to SEK 2.96 (4.61).
- Operating cash flow from operations amounted to SEK -1.8 billion (-0.5) according to IFRS.
- Adjusted interest-bearing net receivables(+)/net debt(-) totaled SEK 4.4 billion (March 31, 2023: 9.5).
- Order bookings in Construction amounted to SEK 63.2 billion (37.3). Adjusted for currency effects, order bookings quarter over quarter increased 68 percent. Rolling 12-month book-to-build ratio was 115 percent (95).
- Operating income in Construction amounted to SEK 1.4 billion (1.4), representing an operating margin of 3.4 percent (3.4).
- Operating income in Project Development amounted to SEK 0.03 billion (1.2).
- Return on capital employed in Project Development was 2.3 percent (10.9).
- Return on equity was 11.1 percent (17.7).
Performance Analysis
Tables referring to segment reporting are in shaded background. For more information see page 17. For definitions of non-IFRS financial measures see pages 18-20.
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|
| Revenue | ||||
| Construction | 40,584 | 39,712 | 161,013 | 156,004 |
| Residential Development | 1,649 | 2,926 | 4,487 | 8,751 |
| Commercial Property Development | 857 | 5,666 | 4,894 | 14,276 |
| Investment Properties | 45 | 10 | 116 | 40 |
| Central and Eliminations | -3,194 | -3,475 | -16,740 | -17,469 |
| Total | 39,940 | 44,838 | 153,771 | 161,602 |
| Operating income | ||||
| Construction | 1,391 | 1,360 | 6,077 | 5,770 |
| Residential Development | 49 | 332 | -152 | 891 |
| Commercial Property Development | -15 | 834 | 1,176 | 3,023 |
| Investment Properties | 6 | 8 | 143 | 140 |
| Central | -73 | -155 | -280 | -339 |
| Eliminations | -27 | 18 | -191 | -187 |
| Operating income | 1,331 | 2,397 | 6,773 | 9,297 |
| Net financial items | 133 | 11 | 550 | 289 |
| Income after financial items | 1,464 | 2,408 | 7,322 | 9,586 |
| Income taxes | -234 | -494 | -1,366 | -1,885 |
| Profit for the period | 1,229 | 1,914 | 5,956 | 7,702 |
| Earnings for the period per share, SEK | 2.96 | 4.61 | 14.39 | 18.62 |
| Revenue for the period according to IFRS | 42,292 | 42,551 | 164,359 | 163,174 |
| Operating income for the period according to IFRS | 2,194 | 2,220 | 9,397 | 10,021 |
| Earnings for the period per share according to IFRS, SEK | 4.72 | 4.28 | 19.58 | 20.04 |
| Operating cash flow from operations | -1,802 | -516 | -3,069 | -2,263 |
| Interest-bearing net receivables(+)/net debt(-) | 3,758 | 7,719 | 10,306 | |
| Return on capital employed in Project Development, % 1 | 10.9 | 2.3 | 8.1 | |
| Return on capital employed in Investment Properties, % 1 | 11.7 | 5.5 | 13.6 | |
| Adjusted interest-bearing net receivables(+)/net debt(-) | 4,415 | 11,102 | 12,130 | |
| Return on equity, % 1 | 17.7 | 11.1 | 15.8 | |
1 Rolling 12 months.
Revenue
Operating income
Operating income per segment Jun 30, 2023, R-12
- Construction, 84%
- Residential Development, -2% Investment Properties, 2%
- Commercial Property Development, 16%
Operating cash flow
CEO comment
Our construction order backlog reached a new historic high during the second quarter, supported by record strong order intake. Group results for the period benefited from strong performance in Construction while the contribution from Residential and Commercial Development is small due to low market activity. Our financial position is strong and makes us a reliable partner for clients, suppliers and business partners, while also ensuring that we can act on business opportunities that arise in the cyclical property market.
In Construction the selective bidding and strong commercial management strategy continues to render good results. The business stream delivered stable operating income in line with the same quarter last year. Rolling 12-month operating margin stayed well above the long-term Group target. The quarter saw the strongest order intake in an isolated quarter for more than a decade, boosted by large civil contracts in Norway and the USA, bringing the group order backlog to a new historic high.
In the Residential Development stream, the weak market sentiment continued to impact the second quarter results. The number of sold homes increased compared to the previous two quarters, with a strong contribution from the Central European operation. Results for the business stream are, however, negatively impacted by lower-than-normal volumes and the measures taken to adapt our low-cost concept BoKlok to the market environment. For market activity to normalize, households will need to see general economic uncertainty reducing.
During the second quarter, Commercial Property Development completed two smaller sized divestments in Sweden, but transaction volumes are low year to date following a hesitant investor market. However, leasing in the quarter was strong, supported by several large leases signed in the Central European operations. Improved tenant demand together with a limited supply of modern office space in Central Europe for the coming years has sped up tenant decision making, resulting in solid leasing in the quarter. During the quarter we acquired a strategic land plot in Stockholm and secured a large development opportunity in Boston, the latter being in line with our commercial direction and ambition to diversify the portfolio to include multi-family for rent and life science in selected geographies.
The Investment Properties portfolio continued to perform with good tenant interest for the few vacant premises that remain. Sustainable, move-in ready properties offering good tenant amenities and services are in higher demand than less modern stock, which bodes well for our high-quality assets.
Reducing carbon emissions in our operations and supply chain remains a priority. Our scope 1 and 2 emissions declined marginally during the quarter and are 57 percent below our benchmark year of 2015. This quarter and for the second consecutive year, we have been named "Climate Leader in Europe" on the prestigious Financial Times ranking. Existing emissions data and actions for reducing carbon emissions were reviewed from 4,000 companies with only 10 percent of them qualifying for the list. I see this as a testament to our commitment to sustainability and encouragement to continue to improve.
Our strategy and commercial direction continue to drive our performance and long-term value creation. Construction is delivering strong results and despite lower sales activity in the property development streams we continue to selectively invest in existing projects and new strategic land acquisitions. This is a good way to use the strong financial position that we built up in the years with favorable markets, enabling value creation in the longer term.
Anders Danielsson President and Chief Executive Officer
Skanska target performance (rolling 12 month basis)
Operating margin – Construction
3.8% 2.3%
Target ≥3.5% Target ≥10%
Return on equity
11.1%
Target ≥18%
Return on capital employed – Project Development
+4.4 SEK bn -57%
Return on capital employed – Investment Properties
5.5%
Target ≥6%
Adjusted net debt (-)/net cash(+) Climate target (scope 1 and 2) Reduction CO2 compared with 2015
Limit SEK -10 bn Target -70% (scope 1 and 2) by 2030
Market outlook, next 12 months
Skanska's market outlook aims to describe the situation on markets that are relevant for our operations, this applies to segments, sectors and geographies.
Weaker outlook compared to previous quarter. Unchanged outlook compared to previous quarter. Improved outlook compared to previous quarter.
Very strong market coming 12m Strong market coming 12m Stable market coming 12m Weak market coming 12m Very weak market coming 12m
Construction
Market outlook is mostly in line with previous expectations. The Swedish building market is expected to weaken over the coming 12 months. USA remains the strongest market, both for civil and building, supported by pent up demand, need for investment in several sectors and access to federal funding. The overall economic situation remains uncertain, but we are well positioned towards sectors that have stayed active, such as civil infrastructure and social infrastructure including education, healthcare, transportation and defense. Material availability and prices have leveled out, but there are still large variations among categories of suppliers, materials, and geographies.
| Building | Civil | |
|---|---|---|
| Nordics | ||
| Sweden | ||
| Norway | ||
| Finland | ||
| Europe | ||
| Central Europe | ||
| United Kingdom | ||
| USA | ||
| USA |
Residential Development
Activity remains low in the housing market following high inflation, interest rate hikes and overall economic uncertainty. Customers want to buy and sell in the same market which means that sales activity in new-built projects picks up closer to completion. Poland is expected to remain the strongest geography while the Nordics (incl Sweden) are the weakest. Activity is expected to normalize once the overall economic uncertainty reduces.
| Nordics | |
|---|---|
| of which Sweden | |
| Europe |
Urbani, Gothenburg, Sweden
Commercial Property Development
Transaction volumes remain low and we expect the hesitant investor behavior to continue for some time. Activity in the leasing market is however slowly recovering, most notably in Central Europe where there is a clear supply gap for new built offices in attractive locations for the coming years. Tenants focus on flexible, sustainable premises in good locations to attract and retain employees.
| Nordics | |
|---|---|
| Europe | |
| USA |
Centrum Poludnie, Wrocław, Poland
Investment Properties
Occupier demand is polarized with stronger demand for quality space in buildings with high sustainability standards. Tenants prioritize flexibility and move-in ready offices. The market remains competitive but rents are expected to remain mostly stable.
| Nordics | |
|---|---|
| Sweden |
Sthlm01, Stockholm, Sweden
Performance analysis
Group
Revenue and operating income, rolling 12 months Revenue per segment, rolling 12 months
Revenue and earnings
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|
| Revenue | 39,940 | 44,838 | 153,771 | 161,602 |
| Operating income 1, 2 | 1,331 | 2,397 | 6,773 | 9,297 |
| Net financial items | 133 | 11 | 550 | 289 |
| Income after financial items | 1,464 | 2,408 | 7,322 | 9,586 |
| Income taxes | -234 | -494 | -1,366 | -1,885 |
| Profit for the period | 1,229 | 1,914 | 5,956 | 7,702 |
| Earnings for the period per share, SEK 3 | 2.96 | 4.61 | 14.39 | 18.62 |
| Earnings for the period per share according to IFRS, SEK 3 |
4.72 | 4.28 | 19.58 | 20.04 |
- 1 Central, SEK -73 M (-155).
- 2 Eliminations, SEK -27 M (18).
- 3 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
Changes and currency rate effects
| Change in SEK | Change in local currency |
Currency effect | |||
|---|---|---|---|---|---|
| Apr-Jun 2023 / Apr-Jun 2022 | |||||
| Revenue | -11% | -15% | 4% | ||
| Operating income | -44% | -46% | 2% | ||
| Rolling 12 months 2023 / Rolling 12 months 2022 | |||||
| Revenue | -4% | -12% | 8% | ||
| Operating income | -28% | -33% | 5% |
Revenue decreased 11 percent and amounted to SEK 39.9 billion (44.8); adjusted for currency effects, revenue decreased 15 percent. Operating income decreased 44 percent and amounted to SEK 1,331 M (2,397); adjusted for currency effects, operating income decreased 46 percent, following a lower contribution from the property development business streams that are impacted by weaker markets.
Central stream totaled SEK -73 M (-155), of which SEK 138 M (37) relate to the PPP portfolio.
Operating income per segment, rolling 12 months
Net financial items amounted to SEK 133 M (11), following increased interest rates on interest-bearing net receivables and increased capitalized interest in ongoing development projects.
Income taxes for the period amounted to SEK -234 M (-494). Effective tax rate of January 1 to June 30 amounts to 17 percent (20).
Cash flow
Group
Operating cash flow from operations
Operating cash flow from operations for the period amounted to SEK -1,802 M (-516), change mainly explained by change in working capital in Construction. Taxes paid in business operations amounted to SEK -706 M (-444) for the period. The dividend that was approved at the AGM in the first quarter, was distributed during the second quarter.
Commercial Property Development assets sold but not transferred will have a positive effect on cash flow of SEK 7.9 billion during the years 2023 to 2026, with SEK 2.8 billion during the second half of 2023 and SEK 5.1 billion during 2024-2026.
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|
| Cash flow from business operations | 1,652 | 1,057 | 7,247 | 5,885 |
| Change in working capital | -1,415 | -199 | -298 | -1,520 |
| Net divestments(+)/investments(-) | -1,150 | -977 | -7,550 | -5,030 |
| Cash flow adjustment | -64 | 238 | 49 | 468 |
| Cash flow from business operations before taxes paid |
-977 | 121 | -552 | -198 |
| Taxes paid in business operations | -706 | -444 | -2,075 | -1,625 |
| Cash flow from financing operations | -118 | -193 | -442 | -441 |
| Operating cash flow from operations | -1,802 | -516 | -3,069 | -2,263 |
| Net strategic divestments(+)/investments(-) | 20 | 15 | 212 | 197 |
| Dividend etc. | -3,177 | -4,258 | -3,655 | -4,645 |
| Cash flow before change in interest-bearing receivables and liabilities |
-4,959 | -4,759 | -6,511 | -6,711 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities |
1,624 | 1,771 | 3,503 | 5,538 |
| Cash flow for the period | -3,335 | -2,987 | -3,008 | -1,173 |
Operating cash flow Free working capital in Construction
Free working capital in Construction amounted to SEK 28.1 billion (28.9). Average free working capital in relation to Construction revenue in the past 12 months was 18.0 percent (19.4). Free working capital in Construction remained at a good level due to favorable cash flow profiles in several projects and continued focus on cash generation in the Construction stream. Cash flow due to changes in working capital in Construction amounted to SEK -1,013 M (-858).
Financial position
Adjusted interest-bearing net receivables(+)/net debt(-)
Balance sheet - Summary
| SEKbn | Jun 30, 2023 |
Jun 30, 2022 |
Dec 31, 2022 |
|---|---|---|---|
| Total assets | 157.0 | 144.5 | 151.6 |
| Total equity | 57.1 | 47.8 | 55.3 |
| Interest-bearing net receivables (+)/net debt (-) | 3.8 | 7.7 | 10.3 |
| Adjusted interest-bearing net receivables(+)/net debt(-) | 4.4 | 11.1 | 12.1 |
| Capital employed, closing balance | 75.3 | 68.0 | 72.8 |
| Equity/assets ratio, % | 36.4 | 33.1 | 36.4 |
Change in net interest-bearing receivables and liabilities
| SEKM | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| Opening balance interest- bearing net receivables(+)/net debt(-) |
8.406 | 11,088 | 10,306 | 12,598 | 12.598 |
| Cash flow for the period | -3,335 | -2,987 | -3,501 | -1,666 | -1,173 |
| Less change in interest-bearing receivables and liabilities | -1,624 | -1,771 | -3,910 | -5,945 | -5,538 |
| Cash flow before change in interest-bearing receivables and liabilities | -4,959 | -4,759 | -7,411 | -7,611 | -6,711 |
| Translation differences, net receivables/net debt | -235 | 529 | -435 | 881 | 887 |
| Remeasurements of pension liabilities | 425 | 746 | 1,089 | 1,590 | 3,100 |
| Interest-bearing liabilites acquired/divested | 5 | 0 | 5 | 0 | -51 |
| Other changes, interest-bearing net receivables/net debt | 115 | 113 | 204 | 260 | 483 |
| Change in interest-bearing net receivables/net debt | -4,648 | -3,370 | -6,548 | -4,879 | -2,292 |
| Closing balance interest- bearing net receivables(+)/net debt(-) |
3,758 | 7,719 | 3,758 | 7,719 | 10,306 |
| Restricted cash | -6,296 | -6,109 | -6,296 | -6,109 | -5,948 |
| Pension liability, net | -766 | 2,231 | -766 | 2,231 | 491 |
| Lease liabilities | 7,718 | 7,262 | 7,718 | 7,262 | 7,281 |
| Closing balance adjusted inte- rest-bearing net receivables(+)/ net debt(-) |
4,415 | 11,102 | 4,415 | 11,102 | 12,130 |
Adjusted interest-bearing net receivables (+)/net debt (-) amounted to SEK 4.4 billion (March 31, 2023: 9.5). Interest-bearing net receivables amounted to SEK 3.8 billion (March 31, 2023: 8.4) and include SEK 7.7 billion in interest-bearing lease liabilities according to IFRS 16.
At the end of the quarter, cash, cash equivalents and committed unutilized credit facilities amounted to SEK 16.0 billion (March 31, 2023: 16.0), of which SEK 13.5 billion (March 31, 2023: 12.5) is available within one week. The Group central loan portfolio amounted to SEK 4.2 billion (March 31, 2023: 3.7) consisting of bilateral loans with an average maturity of 2.4 years. At June 30, the Group's unutilized credit facilities increased to SEK 9.4 billion following procurement of additional revolving credit facilities. The central loan portfolio, including committed unutilized credit facilities, had an average maturity of 3.2 years (March 31, 2023: 3.4).
At the end of the quarter, capital employed amounted to SEK 75.3 billion (March 31, 2023: 70.7).
Equity
Changes in equity
| SEKM | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| Opening balance | 53,290 | 43,837 | 55,255 | 45,465 | 45,465 |
| Dividend to shareholders | 0 | 0 | -3,081 | -4,124 | -4,124 |
| Other changes in equity not included in total comprehensive income for the year | 22 | -30 | 0 | 20 | -50 |
| Profit for the period | 1,952 | 1,776 | 2,548 | 2,741 | 8,284 |
| Other comprehensive income | |||||
| Translation differences | 1,347 | 1,228 | 1,284 | 1,891 | 2,386 |
| Effects of remeasurements of pensions | 440 | 872 | 1,039 | 1,587 | 3,026 |
| Effects of cash flow hedges | 25 | 104 | 32 | 208 | 267 |
| Closing balance | 57,076 | 47,787 | 57,076 | 47,787 | 55,255 |
Adjusted equity
| SEK bn | Jun 30, 2023 |
Jun 30, 2022 |
Dec 31, 2022 |
|---|---|---|---|
| Equity attributable to equity holders | 56.9 | 47.7 | 55.1 |
| Unrealized surplus value in Residential Development | 4.1 | 3.6 | 3.8 |
| Unrealized Commercial Property Development gains | 8.1 | 11.0 | 9.5 |
| Effect in unrealized equity in PPP-portfolio | 1.0 | 0.5 | 0.6 |
| Adjusted equity | 70.1 | 62.7 | 69.0 |
The Group's equity amounted to SEK 57.1 billion (47.8), resulting in an equity/assets ratio of 36.4 percent (33.1) and a net debt/equity ratio of -0.1 (-0.2). Translation differences for the period amounted to SEK 1,347 M (1,228) due to a weaker Swedish krona. Remeasurements of pensions resulted in an effect of SEK 440 M (872). Both plan assets and pension obligations respectively have decreased due to the remeasurements.
Total adjusted equity amounted to SEK 70.1 billion (62.7), resulting in adjusted equity per share of SEK 170.57 (152.10). Unrealized surplus values in Project Development including the PPP portfolio amounted to SEK 14.6 billion of which SEK 1.6 billion was realized according to segment reporting. Corresponding amounts less standard tax were SEK 13.1 billion and SEK 1.4 billion. In addition to the unrealized surplus values in adjusted equity, surplus value for homes in production realized according to segment reporting but not yet handed over, amounted to SEK 1.8 billion post standard tax.
Investments and divestments
The Group's investments amounted to SEK -6,100 M (-7,196), while divestments amounted to SEK 4,970 M (6,235), resulting in net investments of SEK -1,130 M (-961).
In Construction, investments totaled SEK -648 M (-486). These investments mainly relate to property, plant and equipment for the Group's own operations. Net investments in Construction amounted to SEK -544 M (-357). Depreciation of property, plant and equipment including right-of-use assets amounted to SEK -605 M (-590).
In Residential Development, investments totaled SEK -2,270 M (-3,021), of which SEK -192 M (-738) relates to land acquisitions, corresponding to 256 building rights. Divestments amounted to SEK 2,959 M (2,362). Net divestments in Residential Development amounted to SEK 689 M (-659).
In Commercial Property Development, investments totaled SEK -3,175 M (-3,644), of which SEK -503 M (-676) relates to investments in new land, while divestments amounted to SEK 1,649 M (3,755). Net investments in Commercial Property Development amounted to SEK -1,526 M (111).
In Investment Properties, investment totaled SEK -2 M (0) and relates to tenant fit-outs for space that have been leased out.
Investments and divestments Investments, divestments and net divestments(+)/investments(-)
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|
| Investments | ||||
| Construction | -648 | -486 | -2,565 | -2,210 |
| Residential Development | -2,270 | -3,021 | -10,086 | -10,615 |
| Commercial Property Development | -3,175 | -3,644 | -11,948 | -12,294 |
| Investment Properties | -2 | 0 | -2,924 | -3,668 |
| Other | -4 | -45 | 2,779 | 3,221 |
| Total | -6,100 | -7,196 | -24,744 | -25,567 |
| Divestments | ||||
| Construction | 104 | 130 | 665 | 764 |
| Residential Development | 2,959 | 2,362 | 10,247 | 9,349 |
| Commercial Property Development | 1,649 | 3,755 | 8,787 | 14,389 |
| Investment Properties | 0 | 0 | 0 | 0 |
| Other | 258 | -12 | -2,293 | -3,767 |
| Total | 4,970 | 6,235 | 17,406 | 20,734 |
| Net divestments(+)/investments(-) | ||||
| Construction | -544 | -357 | -1,900 | -1,446 |
| Residential Development | 689 | -659 | 161 | -1,267 |
| Commercial Property Development | -1,526 | 111 | -3,161 | 2,094 |
| Investment Properties | -2 | 0 | -2,924 | -3,668 |
| Other | 254 | -57 | 486 | -546 |
| Total | -1,130 | -961 | -7,338 | -4,833 |
| Of which strategic | 20 | 15 | 212 | 197 |
Capital employed in Project Development and Investment Properties
| SEK M | Jun 30, 2023 |
Jun 30, 2022 |
Dec 31, 2022 |
|---|---|---|---|
| Residential Development | 16,495 | 16,091 | 16,346 |
| Commercial Property Development | 45 498 | 36 854 | 38 547 |
| Investment Properties | 3,694 | 753 | 3,733 |
| Total in Project Development and Investment Properties | 65,687 | 53,698 | 58,626 |
Investment, Nansenløkka, Bærum, Norway Divestment, Court Buildning, Borås, Sweden
Performance analysis, business streams
Construction - Order situation
Order backlog, revenue and order bookings
At the end of the quarter, the order backlog amounted to SEK 250.3 billion compared to SEK 217.9 billion at the end of the previous quarter. The order backlog stands at a historic high and corresponds to 18 months of production (March 31, 2023: 16).
Changes and currency rate effects
| Change in SEK | Change in local currency | Currency effect | |||
|---|---|---|---|---|---|
| Apr-Jun 2023 / Apr-Jun 2022 | |||||
| Order bookings | 69% | 68% | 1% | ||
| Jun 30, 2023 / Mar 31, 2023 | |||||
| Order backlog | 15% | 10% | 5% |
Order bookings and order backlog in Construction
| SEKbn | Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|
| Order bookings | 63.2 | 37.3 | 184.4 | 162.7 |
| Order backlog 1 | 250.3 | 215.5 | 229.8 |
1 Refers to the end of each period
Order bookings amounted to SEK 63.2 billion (37.3); adjusted for currency effects, order bookings increased 68 percent, following exceptionally strong order bookings in Norway and USA. On a rolling 12-month basis the book-to-build ratio was 115 percent (March 31, 2023: 99). For more information, see page 29.
Major orders in the quarter
| Geography | Contract | Amount SEK M | Client |
|---|---|---|---|
| Nordic | E10/rv. 85 road project | 11,400 | Norwegian Public Roads |
| USA | Roadway and transportation center at JFK Airport |
9,100 | Port Authority of New York and New Jersey |
| Nordic | Highway | 4,600 | Norwegian Road Authority (NPRA) |
| USA | Residence and campus center | 3,200 | Simmons University |
| USA | Freeway Interchange improvements | 2,800 | San Gabriel Valley Council of Governments |
Construction revenue from internal Project Development contracts on a rolling 12-month basis amounted to:
15.3 SEK bn
John F Kennedy International Airport, New York, USA
Construction
Revenue and operating margin, rolling 12 months Changes and currency rate effects
Revenue and earnings
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|
| Revenue | 40,584 | 39,712 | 161,013 | 156,004 |
| Gross income | 3,051 | 2,950 | 12,797 | 12,268 |
| Selling and administrative expenses | -1,661 | -1,596 | -6,742 | -6,534 |
| Income from joint ventures and associated companies |
0 | 6 | 22 | 36 |
| Operating income | 1,391 | 1,360 | 6,077 | 5,770 |
| Gross margin, % | 7.5 | 7.4 | 7.9 | 7.9 |
| Selling and administrative expenses, % | -4.1 | -4.0 | -4.2 | -4.2 |
| Operating margin, % | 3.4 | 3.4 | 3.8 | 3.7 |
| Average number of employees | 25,576 | 26,741 | 26,892 |
| Change in SEK | Change in local currency |
Currency effect | |||
|---|---|---|---|---|---|
| Apr-Jun 2023 / Apr-Jun 2022 | |||||
| Revenue | 2% | -2% | 4% | ||
| Operating income | 2% | -2% | 4% | ||
| Rolling 12 months 2023 / Rolling 12 months 2022 | |||||
| Revenue | 12% | 4% | 8% | ||
| Operating income | 24% | 15% | 9% |
Revenue in the Construction business stream increased 2 percent and amounted to SEK 40.6 billion (39.7); adjusted for currency effects, revenue decreased by 2 percent. Strong performance resulted in an operating margin of 3.4 percent (3.4). Operating income increased 2 percent and amounted to SEK 1,391 M (1,360); adjusted for currency effects, operating income decreased by 2 percent.
The rolling 12-month operating margin was 3.8 percent (March 31, 2023; 3.8), well above the target of 3.5 percent.
E16 Bjørum-Skaret, Norway Image: Mikkel Walle
Residential Development1
Revenue and operating margin, rolling 12 months1
1 Including residential rentals until Q4 2020.
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|
| Revenue | 1,649 | 2,926 | 4,487 | 8,751 |
| Gross income | 226 | 539 | 653 | 1,674 |
| Selling and administrative expenses | -178 | -207 | -805 | -783 |
| Operating income | 49 | 332 | -152 | 891 |
| Gross margin, % | 13.7 | 18.4 | 14.5 | 19.1 |
| Selling and administrative expenses, % | -10.8 | -7.1 | -17.9 | -9.0 |
| Operating margin, % | 2.9 | 11.3 | neg | 10.2 |
| Return on capital employed, % 1 | 11.0 | 0.2 | 6.8 |
1 Rolling 12 months. For definition see page 19.
Revenue in the Residential Development business stream amounted to SEK 1,649 M (2,926). Sales volumes have come up from the previous two quarters but remain lower than normal following the subdued market activity. Operating income for the business stream amounted to SEK 49 M (332), including a negative result of SEK -128 M from our low-cost concept BoKlok which is adjusting operations to meet the new market situation. Home buyers in the affordable segment are experiencing the most significant cost-of-living pressure from higher interest rates and inflation. BoKlok impacts all geographical reporting segments. The operating margin in the residential development business stream was 2.9 percent (11.3) in the second quarter.
Homes sold and started, rolling 12 months1
1 Including residential rentals until Q4 2020.
Homes sold and started
| Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|
|---|---|---|---|---|
| Homes sold | 343 | 680 | 968 | 2,052 |
| Homes started | 241 | 957 | 1,571 | 2,805 |
Homes under construction and unsold1
1 Including residential rentals until Q4 2020.
Revenue and earnings Homes under construction and unsold
| Jun 30, 2023 |
Jun 30, 2022 |
Dec 31, 2022 |
|
|---|---|---|---|
| Homes under construction | 6,354 | 6,979 | 7,015 |
| of which sold, % | 58 | 67 | 60 |
| Completed unsold, number of homes | 306 | 72 | 130 |
The number of homes sold was 343 (680) and construction started on 241 homes (957). At the end of the quarter, 6,354 homes (March 31, 2023: 6,679) were under construction. Of these, 58 percent (March 31, 2023: 57) were sold. The number of completed unsold homes increased to 306 (March 31, 2023: 210), of which unsold homes in BoKlok was 161. The number of unsold completed homes usually increase in times with elevated market uncertainty. Sales volumes reduce and home buyers prefer to buy closer to completion in order to sell and buy in the same market. During the quarter 566 (654) homes were completed.
Breakdown of carrying amounts
| SEK M | Jun 30, 2023 |
Jun 30, 2022 |
Dec 31, 2022 |
|---|---|---|---|
| Completed projects | 1,075 | 655 | 549 |
| Ongoing projects | 11,545 | 10,837 | 11,986 |
| Undeveloped land and development properties | 10,722 | 9,401 | 10,126 |
| Total | 23,342 | 20,893 | 22,660 |
A breakdown of the carrying amounts for Residential Development is presented in the table above. The estimated unrealized surplus value, pre-tax, in unsold homes in construction and undeveloped land and development properties amounted to SEK 4.5 billion. Surplus value, pre-tax, for homes in construction which are sold according to segment reporting amounted to SEK 1.9 billion.
The undeveloped land and development properties correspond to Skanska-owned building rights for 28,100 homes and 1,900 building rights held by joint ventures. In addition, subject to certain conditions, the business stream has the right to purchase 12,100 building rights.
1 Net homes sold, including cancellations. 1 Starting this year, all residential rental projects are reported in the Commercial Property Development stream. The comparable period, including rolling 12 months, has been restated to reflect this reallocation.
Commercial Property Development1
Revenue and operating income from property divestments1 Unrealized and realized gains, segment reporting1
Operating income from divestments, rolling 12 months
Revenue and earnings
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|
| Revenue | 857 | 5,666 | 4,894 | 14,276 |
| of which from divestment of properties | 627 | 5,513 | 4,119 | 13,594 |
| Gross income | 233 | 1,082 | 2,021 | 3,857 |
| Selling and administrative expenses | -247 | -251 | -1,001 | -999 |
| Income from joint ventures and associated companies |
-1 | 3 | 156 | 165 |
| Operating income | -15 | 834 | 1,176 | 3,023 |
| of which from divestment of properties | 171 | 1,084 | 1,900 | 3,839 |
| Return on capital employed, % 1 | 10.9 | 3.1 | 8.7 |
1 Rolling 12 months. For definition see page 19.
In the Commercial Property Development business stream two smaller sized projects were divested during the quarter. Total revenue amounted to SEK 857 M (5,666). Operating income was SEK -15 M (834). For the rolling 12-month period, properties have been divested for a total value of SEK 4,119 M. Return on capital employed was 3.1 percent (10.9).
Breakdown of investment value and market values
| SEK M | Investment value, end of period |
Investment value upon completion |
Market value 1, 2 |
Unrealized gains7 |
|---|---|---|---|---|
| Ongoing projects 3 | 18,676 | 32,661 | 37,890 | 5,229 |
| Completed projects 4, 5 | 9,946 | 9,946 | 12,642 | 2,696 |
| Undeveloped land and development properties | 14,108 | 14,108 | 15,165 | 1,057 |
| Total | 42,730 | 56,715 | 65,697 | 8,982 |
| of which carrying amount 6 | 42,730 | 56,715 | ||
| of which completed projects sold according to segment reporting |
0 | 0 | 0 | 0 |
| of which ongoing projects sold according to segment reporting |
3,756 | 6,380 | 7,933 | 1,553 |
- 1 Market value according to appraisal on June 30, 2023.
- 2 Ongoing projects estimated market value at completion fully leased.
- 3 Including tenant improvement and leasing commissions in CDUS amounted to SEK 144 M. 4 Including tenant improvement and leasing commissions in CDUS amounted to SEK 360 M.
- 5 Skanska's share of total production cost in JVs is SEK 0 M end of period and upon completion.
- 6 Includes Skanska's total equity investment in JV of SEK 0 M. 7 Market value less investment value upon completion.
Commercial properties leasing and degree of completion1
1 Leasing including residential rentals in the USA and Denmark until Q4 2020.
Estimated market value at completion for the commercial property development portfolio amounted to SEK 65.7 billion at the end of the second quarter, corresponding to an unrealized gain of SEK 7.4 billion. During the quarter two pre-sold projects were started, four were completed and four were successfully handed over to external buyers.
Projects sold but not yet transferred, will have a positive effect on cash flow of SEK 2.8 billion in the second half of 2023 and SEK 5.1 billion during 2024-2026.
End of the quarter 33 projects with a total leaseable area of 632,000 sq m were ongoing and the degree of completion in the portfolio increased to 58 percent. The percentage let increased to 35 percent, and without the 10 residential rental projects, the portfolio is leased to 43 percent. The portfolio of completed projects amounts to 20 properties with a total leaseable area of 379,000 sq m, all being commercial properties. It was 73 percent let by the end of the quarter.
Second quarter leasing came in at 78,000 sq m (47,000), especially driven by strong performance in Central Europe. Over a rolling 12 months period, new lease agreements have been signed for 205,000 sq m (161,000).
Accumulated eliminations of intra-Group Construction profits amounted to SEK -640 M, reducing the carrying amount for current asset properties in Commercial Property Development. These eliminations are released at the Group level as each project is divested.
1 Starting this year, all residential rental projects are reported in the Commercial Property Development stream. The comparable period, including rolling 12 months, has been restated to reflect this reallocation.
Investment Properties
Revenue and earnings
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|
| Revenue | 45 | 10 | 116 | 40 |
| Operating net | 32 | 8 | 86 | 30 |
| Selling and administrative expenses | -1 | 0 | -4 | -2 |
| Change in property value | -25 | 0 | 61 | 112 |
| Operating income | 6 | 8 | 143 | 140 |
| Investments | -2 | 0 | -2,924 | -3,668 |
| Divestments | 0 | 0 | 0 | 0 |
| Net divestments(+)/investments(-) | -2 | 0 | -2,924 | -3,668 |
| Capital employed | 3,694 | 753 | 3,733 | |
| Property value | 3,736 | 766 | 3,758 | |
| Return on capital employed, % 1 | 11.7 | 5.5 | 13.6 | |
| Net leasing SEK M | -2 | 0 | 8 | 0 |
| Economic occupancy rate, % | 93 | 100 | 86 | |
| Surplus ratio, % | 71.6 | 78.8 | 73.8 | 75.4 |
1 Rolling 12 months. For definition see page 19.
Revenue in the Investment Properties business stream amounted to SEK 45 M (10). Operating income amounted to SEK 6 M (8) impacted by change in property value in the portfolio of SEK -25 M. The average valuation yield for the portfolio has been adjusted approximately 15 basis points during the year, corresponding to approximately SEK 130 M. The effect on property value has been partly offset by increased rents and net leasing.
Net leasing amounted to SEK -2 M for the second quarter. The economic occupancy rate in the portfolio amounted to 93 percent.
We will continue to build the Investment Properties asset portfolio with high-quality sustainable properties in attractive locations, targeting a total value of SEK 12-18 billion.
Sthlm 01, Stockholm, Sweden
Sustainability information
Climate data
| Apr-Jun 2023 | Apr-Jun 2022 | Rolling 12 months | Jan-Dec 2022 | |
|---|---|---|---|---|
| Scope 1 and 2 (tonnes CO2 e) |
42,000 | 45,000 | 172,000 | 182,000 |
| Carbon intensity1 | 1.06 | 1.00 | 1.12 | 1.13 |
| Renewable fuels, % | 25 | 19 | 18 | 16 |
| Renewable electricity, % | 88 | 86 | 88 | 87 |
1 Scope 1 and 2 (market-based)/ SEK M revenue, according to segment reporting.
Combined scope 1 and 2 emissions totaled 42,000 tonnes (45,000) for the second quarter, 7 percent lower compared to last year. On a rolling 12-months basis, combined scope 1 and 2 emissions totaled 172,000 tonnes, 57 percent below our 2015 baseline. Skanska's carbon intensity stands at 1.06 (1.00), compared to 2.60 in 2015.
Scope 1 emissions are driven primarily by the combustion of fossil fuels on site. Scope 1 emissions were 5 percent lower compared to last year, corresponding to approximately 2,000 tonnes . This is mainly driven by improved efficiency and an increasing uptake in the use of biofuels. Groupwide adoption of renewable fuels was 25 percent for the second quarter.
Scope 2 emissions are primarily driven by the use of electricity. Scope 2 emissions were 6 percent lower compared to last year, corresponding to a total reduction of approximately 200 tonnes. Group-wide share of renewable electricity was 88 percent.
Skanska's own emissions (scope 1 and 2)
Health and Safety data
| Apr-Jun 2023 | Apr-Jun 2022 | Rolling 12 months | Jan-Dec 2022 | |
|---|---|---|---|---|
| Lost time accident rate (LTAR) 1 | 2.9 | 3.0 | 2.9 | 2.9 |
| Executive Site Safety Visits (ESSV) 1 | 2,231 | 2,574 | 7,794 | 7,921 |
1 For definitions see page 20.
Lost time accident rate (LTAR), is an indicator for monitoring safety performance. On a rolling 12-months basis in the second quarter, LTAR remains at 2.9 (2.9).
Executive Site Safety Visits (ESSV) promote clear and visible leadership for enhanced safety performance. In the second quarter, 2,231 ESSV (2,574) were conducted.
Personnel
During the period, the average number of employees in the Group was 27,156 (28,239). At the end of the quarter, the number of employees totaled 27,321 people (March 31, 2023: 27,316).
Transactions with related parties
There were no new significant transactions during the quarter.
Material risks and uncertainties
For information about risks and a description of key estimates and judgments, see the Annual and Sustainability Report 2022, pages 60-66, Note 2 and 6, as well as the section on market outlook included in this report.
Events after the end of the report period
There were no events after the end of the reporting period.
Financial reports for 2023
Skanska's interim reports and year-end report are available for download on Skanska's website, www.group/skanska.com/investors.
The Group's interim reports for 2023 will be published on the following dates:
November 1, 2023 Interim report third quarter 2023
February 9, 2024 Year-end report 2023
Certification
The Board of Directors and the President and CEO certify that this Six month report provides a true and fair overview of the performance of the business, position and earnings of the Parent Company and the Group and describes the prinicipal risks and uncertainties faced by the Parent Company and the companies in the Skanska Group.
Stockholm, July 21, 2023 Hans Biörck Chairman Pär Boman Board member Ola Fält Board member Jan Gurander Board member Mats Hederos Board member Richard Hörstedt Board member Fredrik Lundberg Board member Catherine Marcus Board member Ann E. Massey Board member Yvonne Stenman Board member Åsa Söderström Winberg Board member Anders Danielsson
President and Chief Executive Officer
This report has not been subject to review by the Company's auditors.
Accounting Principles
For the Group, this Interim report has been prepared in compliance with IAS 34 Interim Financial Reporting, the Annual Accounts Act and the Securities Market Act. The same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statements. For the Parent Company, the Interim report has been prepared in compliance with the Annual Accounts Act, the Securities Market Act, and Swedish Financial Reporting Board's Recommendation RFR 2.
Relation between consolidated operating cash flow statement and consolidated cash flow statement
The difference between the operating cash flow statement and the summary cash flow statement in compliance with IAS 7 Cash flow Statements, is presented in the Annual and Sustainability Report 2022, Note 35.
Segment and IFRS reporting
Skanska's business streams Construction, Residential Development, Commercial Property Development and Investment Properties represent the group's operating segments. Tables in this report that refer to segment reporting are shown with a shaded background. In certain cases, the segment reporting differs from the consolidated results presented in accordance with International Financial Reporting Standards, IFRS.
Construction includes both building construction and civil construction. Revenues and earnings are reported over time for both segment and IFRS reporting.
Residential Development develops residential projects for immediate sale. Homes are adapted to selected customer categories. The units are responsible for planning and selling the projects. The related construction assignments are performed by Skanska's construction units in the Construction segment in each market. In the segment reporting Residential Development recognizes revenue and earnings when contracts are signed for the sale of homes. In the IFRS reporting revenues are instead recognized when the buyer takes possession of the homes.
Commercial Property Development initiates, develops, leases and divests commercial property projects. In most markets the construction assignments are performed by Skanska's Construction segment. In the segment reporting Commercial Property Development recognizes revenue and earnings when contracts are signed for the sale of the properties. In the IFRS reporting revenues are instead recognized when the buyer takes possession of the property.
Investment Properties owns properties for the purpose of earning rentals and for capital appreciation. Rental revenues are recognized on a straightline basis over the lease term. Change in value on investment properties is recognized each quarter both according to segment reporting and IFRS.
Joint ventures are reported under the proportional method in the segment reporting of Residential Development, whereas all other streams/ operating segments apply the equity method.
Intra-Group pricing between operating segments occurs on market terms.
The parent company in a Swedish Group prepares its accounts in compliance with the Swedish Financial Reporting Board's Recommendation RFR 2 Accounting for Legal Entities ("RFR 2"). According to RFR 2, the annual accounts of the legal entity must apply IFRS as far as this is possible within the framework of the Annual Accounts Act and considering the connection between accounting and taxation.
News
As of 2023, residential rental projects in Sweden will be reallocated and included in the multi-family rental portfolio in the Commercial Property Development business stream. Historical financial information from 2021 and 2022 has been restated to reflect this reallocation.
Definitions
The following measures are used as they are viewed as the best and most accurate ways to measure Skanska's operations, reflecting its business model and strategy. Thus assisting investors and management in analyzing trends and performance in Skanska. For further definitions, see the Annual and Sustainability Report 2022, Note 44.
| measures | Definition | Reason for use | ||
|---|---|---|---|---|
| Revenue segment | Revenue segment is the same as revenue IFRS in all streams except for the Residential Development stream and the Commercial Property Development stream, where revenue is recognised for when signing binding agreement for sale of homes and properties. As segment reporting of joint ventures in Residential Development applies the proportional method, revenue segment is affected by this. |
Measure revenue generated in current market environment. |
||
| Gross income | Revenue minus cost of sales. | Measure profit generated from projects. | ||
| Gross margin, % | Gross income as a percentage of revenue. | Measure profitability in projects. | ||
| Operating net | Rental revenue minus operating costs for investment properties (that is, operating expenses, costs for repair and maintenance, property administration and property tax). |
Measures earnings from property management. |
||
| Selling and admin expenses, % |
Selling and administrative expenses as a percentage of revenue. | Measure cost efficiency in selling and administrative expenses. |
||
| Operating income | Revenue minus cost of sales, selling and administrative expenses, change in value of investment properties, and income from joint ventures and associated companies. |
Measure profit generated from operations. | ||
| Operating income segment |
Revenue minus cost of sales, selling and administrative expenses, change in value of investment properties, and income from joint ventures and associated companies, according to segment reporting, and where Residential Development applies the proportional method for reporting of joint ventures. |
Measure profit generated from operations in current market environment. |
||
| Operating income rolling 12 months |
Revenue minus cost of sales, selling and administrative expenses, change in value of investment properties, and income from joint ventures and associated companies, over a rolling 12 months. |
Measure profit generated from operations. | ||
| Operating margin, % | Operating income as a percentage of revenue. | Measure profitability in operations. | ||
| Net financial items | The net of interest income, financial net pension cost, interest expense, capitalized expense, change in fair value and other net financial items. |
Measure total net for financial activities. | ||
| Income after financial items |
Operating income minus net financial items. | Measure profit generated before taxes. | ||
| Earnings per share, segment |
Profit for the period, segment, attributable to equity holders divided by the average number of shares outstanding. |
Measure earnings per share, segment. | ||
| Book-to-build, R-12m, % | Order bookings divided by construction revenue, rolling 12 months. | Measures to which extent new orders are replacing work put in place. |
||
| Unrealized gains, Commercial Property Development (CD) |
Market value minus investment value upon completion for ongoing projects, completed projects and land. Excluding projects sold according to segment reporting. |
Measure potential realization of future gains in Commercial Property Development. |
||
| Capital employed, Group | Total assets minus non-interest-bearing liabilities. | Measure capital usage and efficiency. | ||
| Capital employed, Stream |
Total assets less tax assets, deposits in Skanska's treasury unit and pension receivable minus non-interest-bearing liabilities excluding tax liabilities. Capitalized interest expense is removed from total assets for the Residential Development and Commercial Property Development segments. |
Measure capital usage and efficiency in a Stream. |
||
| Capital employed Residential Development (RD) SEK M |
Total assets 28,240 - tax assets -398 - deposits in internal bank -1,342 - pension receivable -38 - non-interest-bearing liabilities (excluding tax liabilities) -9,691 - capitalized interest expense -275 16,495 |
Measure capital usage and efficiency in Residential Development. |
||
| Capital employed Commercial Property Development (CD) SEK M |
Total assets 50,356 - tax assets -701 - deposits in internal bank -177 - pension receivable 0 - non-interest-bearing liabilities (excluding tax liabilities) -3,439 - capitalized interest expense -542 45,498 |
Measure capital usage and efficiency in Commercial Property Development. |
Non-IFRS financial
| measures | Definition | Reason for use | ||||
|---|---|---|---|---|---|---|
| Capital employed Investment Properties (IP) |
Total assets - tax assets |
3,802 -19 |
Measure capital usage and efficiency in Investment Properties. |
|||
| SEK M | - deposits in internal bank | 0 | ||||
| - pension receivable | 0 | |||||
| - non-interest-bearing liabilities (excluding tax liabilities) | -89 3,694 |
|||||
| Capital employed average | Calculated on the basis of five measuring points; see below. | |||||
| ROCE in RD segment, | Operating income | -152 | Measure the performance (profitability and capital | |||
| rolling 12 months, % | + capitalized interest expense | 165 | efficiency) in RD. | |||
| +/- financial income and other financial items | 25 | |||||
| - interest income from internal bank | 0 | |||||
| Adjusted profit Capital employed average* |
38 15,872 |
|||||
| ROCE RD | 0.2% | |||||
| * Capital employed average | ||||||
| Q2 2023 | 16,495 | x 0.5 | 8,248 | |||
| Q1 2023 | 15,633 | 15,633 | ||||
| Q4 2022 | 16,346 | 16,346 | ||||
| Q3 2022 | 15,218 | 15,218 | ||||
| Q2 2022 | 16,091 | x 0.5 | 8,045 | |||
| 63,489 / 4 | 15,872 | |||||
| ROCE in CD segment, | Operating income | 1,176 | Measure the performance (profitability and capital | |||
| rolling 12 months, % | + capitalized interest expense | 78 | efficiency) in CD. | |||
| +/- financial income and other financial items | 14 | |||||
| - interest income from internal bank | -11 | |||||
| Adjusted profit | 1,256 | |||||
| Capital employed average* ROCE CD |
39,918 3.1% |
|||||
| * Capital employed average Q2 2023 |
45,498 | x 0.5 | 22,749 | |||
| Q1 2023 | 41,622 | 41,622 | ||||
| Q4 2022 | 38,547 | 38,547 | ||||
| Q3 2022 Q2 2022 |
38,329 36,854 |
x 0.5 | 38,329 18,427 |
|||
| 159,673 / 4 | 39,918 | |||||
| ROCE in IP segment, | Operating income | 143 | Measure the performance (profitability and capital | |||
| rolling 12 months , % | +/- financial income and other financial items | 0 | efficiency) in IP. | |||
| - interest income from internal bank | 0 | |||||
| Adjusted profit | 143 | |||||
| Capital employed average* ROCE IP |
2,607 5.5% |
|||||
| * Capital employed average | ||||||
| Q2 2023 | 3,694 | x 0.5 | 1,847 | |||
| Q1 2023 | 3,714 | 3,714 | ||||
| Q4 2022 | 3,733 | 3,733 | ||||
| Q3 2022 | 755 | 755 | ||||
| Q2 2022 | 753 | x 0.5 | 377 | |||
| 10,426 / 4 | 2,607 | |||||
| ROCE in Project Development, segment, rolling 12 months , % |
CD. | Is calculated as the summarized adjusted profit for RD and CD divided by the summarized capital employed average for RD and |
efficiency) in Project Development. | |||
| Adjusted profit |
CE avg | ROCE | ||||
| RD | 38 | 15,872 | 0.2% | Measure the performance (profitability and capital | ||
| CD | 1,256 | 39,918 | 3.1% |
Non-IFRS financial
| measures | Definition | Reason for use | |||
|---|---|---|---|---|---|
| Return on equity segment, rolling 12 months, % |
Profit attributable to equity holders as a percentage of average equity attributable to equity holders. 5,923 / 53,194 = |
11.1% | Measure profitability on invested equity. | ||
| Equity average attributable | Calculated on the basis of five measuring points. | ||||
| to equity holders | |||||
| SEK M | Q2 2023 56,903 |
x 0.5 | 28,451 | ||
| Q1 2023 53,134 |
53,134 | ||||
| Q4 2022 55,111 |
55,111 | ||||
| Q3 2022 52,255 |
52,255 | ||||
| Q2 2022 47,653 |
x 0.5 | 23,827 | |||
| 212,778 / 4 | 53,194 | ||||
| Operating cash flow from operations |
Cash flow from business operations including taxes paid and cash flow from financing operations. |
Measure total cash flow generated from operations. |
|||
| Net divestments/investment | Total investments minus total divestments. | Measure the balance between investments and divestments. |
|||
| Free working capital | Non-interest-bearing receivables minus non-interest-bearing liabilities excluding taxes. |
Measure the funding stemming from the negative working capital. |
|||
| Average free working capital in Construction |
Calculated on the basis of five measuring points. | Measure the funding stemming from the negative working capital generated in Construction. |
|||
| SEK M | Q2 2023 -28,126 |
x 0.5 | -14,063 | ||
| Q1 2023 -28,115 |
-28,115 | ||||
| Q4 2022 -28,920 |
-28,920 | ||||
| Q3 2022 -30,254 |
-30,254 | ||||
| Q2 2022 -28,922 |
x 0.5 | -14,461 | |||
| -115,813 / 4 | -28,953 | ||||
| Interest-bearing net receivables/ net debt |
Interest-bearing assets minus interest-bearing liabilities. | Measure financial position. | |||
| Adjusted interest-bearing net receivables/net debt |
Interest-bearing net receivables/net debt excluding restricted cash, lease liabilities and interest-bearing net pension liabilities. |
Measure financial position and investment capacity. The latter is derived by comparing adjusted interest-bearing net receivables/net debt to limits set by the Board of Directors. |
|||
| Equity/assets ratio, % | Equity including non-controlling interest as a percentage of total assets. |
Measure financial position. | |||
| Net debt/equity ratio | Interest-bearing net debt divided by equity including non-controlling interest. | Measure leverage of financial position. | |||
| Adjusted equity attributable to equity holders |
Equity attributable to equity holders Unrealized surplus value in RD |
56.9 4.5 |
Measure financial position adjusted for surplus values in Project Development net of taxes. |
||
| SEK bn | Unrealized CD gains | 9.0 | The standard corporate tax represents an | ||
| Effect in unrealized equity in PPP-portfolio | 1.1 | approximation of the average corporate income | |||
| Less standard corporate tax, 10% Adjusted equity |
-1.5 70.1 |
tax within the Group. | |||
| Net leasing | Annual rent including supplements of new lettings minus annual rent including | ||||
| supplements for agreements that has been served a notice of termination. | |||||
| Economic occupancy rate, % | Contracted rental income including supplements less discounts for the period divided by total rental value for properties owned at the end of the period. Properties owned at the end of the period are restated as if they have been owned during the whole period, while disposed properties are excluded entirely. |
Measures the efficiency of leasing activity. | |||
| Surplus ratio , % | Operating net for Investment Properties stream divided by rental revenue. | Measures the efficiency of property management. | |||
| Leasable area | Leasable area including garage. | ||||
| Rental value | Rental revenue including supplements for the period plus market rent for vacant premises. |
Indicates total potential rental income for fully let properties. |
|||
| Environmental certification, % | Share of Investment Properties' portfolio being certified according to minimum LEED Gold or similar. |
Measures the sustainability quality of the property portfolio. |
|||
| Lost time accident rate (LTAR) | Number of employee and subcontractor lost time accidents multiplied by 1,000,000 hours and divided by total labor hours. |
Indicator for monitoring safety performance. | |||
| Executive Site Safety Visits (ESSV) |
Site Safety visits performed by senior managers. | Promote clear and visible leadership for enhanced safety performance. |
Reconciliation between segment reporting and IFRS
| External revenue | Intra-Group revenue | Total revenue | Operating income | |||||
|---|---|---|---|---|---|---|---|---|
| SEK M | Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
| Construction | 71,317 1 | 66,544 1 | 6,791 | 6,554 | 78,107 | 73,099 | 2,424 | 2,116 |
| Residential Development | 2,235 | 6,490 | 0 | 10 | 2,235 | 6,500 | -266 | 777 |
| Commercial Property Development | 1,096 | 9,536 | 28 | 970 | 1,124 | 10,505 | -157 | 1,690 |
| Investment Properties | 84 | 10 | 2 | 0 | 86 | 10 | 36 | 33 |
| Total operating segments | 74,732 | 82,580 | 6,821 | 7,534 | 81,553 | 90,114 | 2,037 | 4,617 |
| Central | 87 | 70 | 186 | 149 | 273 | 219 | -232 | -291 |
| Eliminations | 0 | 0 | -7,007 | -7,682 | -7,007 | -7,682 | -81 | -77 |
| Total Group | 74,819 | 82,650 | 0 | 0 | 74,819 | 82,650 | 1,725 | 4,249 |
| Reconciliation to IFRS 2 | 3,949 | -5,067 | 0 | 0 | 3,949 | -5,067 | 1,064 | -836 |
| Total IFRS | 78,767 | 77,583 | 0 | 0 | 78,767 | 77,583 | 2,788 | 3,412 |
| 1 Of which external revenue from joint ventures in PPP-portfolio | 695 | 804 | ||||||
| 2 Of which effect from joint ventures in Residential Development proportionally | -58 | -47 | -82 | -5 | ||||
| Of which effect of different revenue recognition principles | 4,007 | -5,020 | 1,147 | -831 |
Revenue by geographical area (IFRS)
| Construction | Residential Development | Commercial Property Development |
Investment Properties | Central and Eliminations | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEK M | Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
| Nordics | 28,980 | 29,505 | 4,428 | 3,731 | 1,875 | 3,295 | 86 | 10 | -3,156 | -4,393 | 32,212 | 32,148 |
| of which Sweden | 16,314 | 16,543 | 3,668 | 1,817 | 1,777 | 3,213 | 86 | 10 | -2,354 | -3,525 | 19,492 | 18,058 |
| Europe | 13,162 | 12,133 | 747 | 572 | 156 | 2,856 | 0 | 0 | -1,244 | -1,573 | 12,821 | 13,988 |
| USA | 35,965 | 31,461 | 0 | 0 | 100 | 1,483 | 0 | 0 | -2,331 | -1,498 | 33,734 | 31,447 |
| Total operating segments | 78,107 | 73,099 | 5,176 | 4,303 | 2,130 | 7,635 | 86 | 10 | -6,732 | -7,464 | 78,767 | 77,583 |
| Segment | IFRS | Segment | IFRS | Segment | IFRS | Segment | IFRS | |
|---|---|---|---|---|---|---|---|---|
| SEK M | Apr-Jun 2023 |
Apr-Jun 2023 |
Apr-Jun 2022 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Jan-Jun 2022 |
| Revenue | ||||||||
| Construction | 40,584 | 40,584 | 39,712 | 39,712 | 78,107 | 78,107 | 73,099 | 73,099 |
| Residential Development | 1,649 | 2,974 | 2,926 | 2,396 | 2,235 | 5,176 | 6,500 | 4,303 |
| Commercial Property Development | 857 | 1,881 | 5,666 | 3,908 | 1,124 | 2,130 | 10,505 | 7,635 |
| Investment Properties | 45 | 45 | 10 | 10 | 86 | 86 | 10 | 10 |
| Central and Eliminations | -3,194 | -3,191 | -3,475 | -3,475 | -6,734 | -6,732 | -7,464 | -7,464 |
| Skanska Group | 39,940 | 42,292 | 44,838 | 42,551 | 74,819 | 78,767 | 82,650 | 77,583 |
| Operating income | ||||||||
| Construction | 1,391 | 1,391 | 1,360 | 1,360 | 2,424 | 2,424 | 2,116 | 2,116 |
| Residential Development | 49 | 402 | 332 | 310 | -266 | 321 | 777 | 450 |
| Commercial Property Development 1 | -15 | 406 | 834 | 680 | -157 | 262 | 1,690 | 1,226 |
| Investment Properties | 6 | 6 | 8 | 8 | 36 | 36 | 33 | 33 |
| Central | -73 | -73 | -155 | -155 | -232 | -232 | -291 | -291 |
| of which PPP-portfolio | 138 | 138 | 37 | 37 | 210 | 210 | 70 | 70 |
| Eliminations 1 | -27 | 63 | 18 | 17 | -81 | -22 | -77 | -122 |
| Operating income | 1,331 | 2,194 | 2,397 | 2,220 | 1,725 | 2,788 | 4,249 | 3,412 |
| Net financial items | 133 | 134 | 11 | 11 | 279 | 281 | 19 | 19 |
| Income after financial items | 1,464 | 2,328 | 2,408 | 2,231 | 2,003 | 3,069 | 4,268 | 3,431 |
| Income taxes | -234 | -376 | -494 | -455 | -340 | -521 | -859 | -690 |
| Profit for the period | 1,229 | 1,952 | 1,914 | 1,776 | 1,663 | 2,548 | 3,409 | 2,741 |
| Earnings for the period per share, SEK 2 | 2.96 | 4.61 | 4.00 | 8.24 | ||||
| Earnings for the period per share according to IFRS, SEK 2 | 4.72 | 4.28 | 6.16 | 6.61 | ||||
| 1 Of which gains from divestments of commercial properties reported in: | ||||||||
| Commercial Property Development | ||||||||
| Eliminations | 171 19 |
591 61 |
1,084 19 |
931 23 |
217 40 |
636 62 |
2,157 82 |
1,692 65 |
2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
The Skanska Group
Summary income statement (IFRS)
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Revenue | 42,292 | 42,551 | 78,767 | 77,583 | 164,359 | 163,174 |
| Cost of sales | -37,964 | -38,149 | -71,673 | -70,365 | -147,790 | -146,483 |
| Gross income | 4,328 | 4,402 | 7,095 | 7,218 | 16,568 | 16,692 |
| Selling and administrative expenses | -2,274 | -2,244 | -4,537 | -4,275 | -9,260 | -8,998 |
| Change in value, investment properties | -25 | 8 | -25 | 365 | 1,302 | 1,692 |
| Income from joint ventures and associated companies | 166 | 53 | 255 | 104 | 787 | 636 |
| Operating income | 2,194 | 2,220 | 2,788 | 3,412 | 9,397 | 10,021 |
| Financial income | 158 | 55 | 325 | 126 | 594 | 395 |
| Financial expenses | -24 | -44 | -44 | -107 | -42 | -104 |
| Net financial items 1 | 134 | 11 | 281 | 19 | 553 | 290 |
| Income after financial items | 2,328 | 2,231 | 3,069 | 3,431 | 9,950 | 10,312 |
| Income taxes | -376 | -455 | -521 | -690 | -1,858 | -2,027 |
| Profit for the period | 1,952 | 1,776 | 2,548 | 2,741 | 8,092 | 8,284 |
| 1 Of which | ||||||
| Interest income | 148 | 54 | 307 | 88 | 573 | 355 |
| Financial net pension costs | -3 | -12 | -6 | -25 | -28 | -48 |
| Interest expenses | -156 | -57 | -278 | -106 | -428 | -255 |
| Interest expenses from lease liabilities | -58 | -52 | -116 | -106 | -232 | -222 |
| Capitalized interest expenses | 214 | 100 | 395 | 173 | 699 | 477 |
| Net interest items | 145 | 32 | 301 | 24 | 584 | 307 |
| Change in fair value | 1 | -4 | 2 | -2 | 8 | 4 |
| Other net financial items | -12 | -17 | -22 | -3 | -40 | -20 |
| Net financial items | 134 | 11 | 281 | 19 | 553 | 290 |
| Profit attributable to: | ||||||
| Equity holders | 1,941 | 1,765 | 2,530 | 2,728 | 8,058 | 8,256 |
| Non-controlling interests | 11 | 11 | 18 | 13 | 33 | 28 |
| Earnings per share, SEK 2 | 4.72 | 4.28 | 6.16 | 6.61 | 19.58 | 20.04 |
| Earnings per share after dilution, SEK 3 | 4.69 | 4.25 | 6.11 | 6.57 | 19.44 | 19.90 |
2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
Statement of profit or loss and other comprehensive income (IFRS)
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Profit for the period | 1,952 | 1,776 | 2,548 | 2,741 | 8,092 | 8,284 |
| Other comprehensive income | ||||||
| Items that will not be reclassified to profit and loss | ||||||
| Remeasurements of defined benefit plans | 549 | 1,066 | 1,316 | 1,994 | 3,140 | 3,818 |
| Tax related to items that will not be reclassified to profit and loss | -109 | -194 | -277 | -407 | -661 | -792 |
| 440 | 872 | 1,039 | 1,587 | 2,478 | 3,026 | |
| Items that have been or will be reclassified to profit and loss | ||||||
| Translation differences attributable to equity holders | 1,316 | 1,173 | 1,249 | 1,814 | 1,726 | 2,290 |
| Translation differences attributable to non-controlling interests | 6 | 3 | 12 | 7 | 20 | 14 |
| Hedging of exchange rate risk in foreign operations | 25 | 53 | 22 | 70 | 33 | 81 |
| Effects of cash flow hedges 1 | 11 | 41 | 27 | 58 | 78 | 108 |
| Share of other comprehensive income of joint ventures and associated companies 2 |
14 | 72 | 4 | 161 | 21 | 178 |
| Tax related to items that have been or will be reclassified to profit and loss | 0 | -9 | 1 | -10 | -8 | -19 |
| 1,372 | 1,332 | 1,316 | 2,099 | 1,870 | 2,653 | |
| Other comprehensive income after tax | 1,813 | 2,204 | 2,355 | 3,686 | 4,348 | 5,679 |
| Total comprehensive income | 3,764 | 3,980 | 4,903 | 6,426 | 12,440 | 13,963 |
| Total comprehensive income attributable to | ||||||
| Equity holders | 3,747 | 3,966 | 4,873 | 6,407 | 12,387 | 13,920 |
| Non-controlling interests | 18 | 14 | 30 | 20 | 53 | 43 |
| 1 Of which transferred to income statement | -21 | 1 | -35 | 0 | -79 | -44 |
| 2 Of which transferred to income statement | 3 | 18 | 9 | 42 | 31 | 64 |
3 Earnings for the period attributable to equity holders divided by the average number of shares outstanding after dilution.
Summary statement of financial position (IFRS)
| SEK M | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Investment properties | 3,736 | 766 | 3,758 |
| Property, plant and equipment | 8,268 | 7,504 | 7,803 |
| Property, plant and equipment right-of-use assets | 3,452 | 3,351 | 3,256 |
| Goodwill | 4,341 | 4,076 | 4,160 |
| Other intangible assets | 413 | 611 | 488 |
| Investments in joint ventures and associated companies | 2,574 | 2,940 | 2,901 |
| Financial non-current assets 1, 3 | 5,852 | 3,327 | 3,607 |
| Deferred tax assets | 1,217 | 1,255 | 995 |
| Total non-current assets | 29,853 | 23,830 | 26,970 |
| Current assets | |||
| Current-asset properties 2 | 65,569 | 54,915 | 58,474 |
| Current-asset properties right-of-use land | 3,886 | 3,565 | 3,676 |
| Inventories | 1,270 | 1,171 | 1,300 |
| Financial current assets 3 | 9,659 | 15,298 | 14,413 |
| Tax assets | 1,954 | 1,731 | 1,248 |
| Contract assets | 7,917 | 7,519 | 7,772 |
| Trade and other receivables | 30,254 | 26,957 | 27,726 |
| Cash and cash equivalents | 6,610 | 9,474 | 10,014 |
| Total current assets | 127,121 | 120,628 | 124,623 |
| TOTAL ASSETS | 156,973 | 144,459 | 151,593 |
| of which interest-bearing financial non-current assets | 5,811 | 3,289 | 3,569 |
| of which interest-bearing current assets | 16,144 | 24,593 | 24,327 |
| Total interest-bearing assets | 21,955 | 27,882 | 27,896 |
| EQUITY | |||
| Equity attributable to equity holders | 56,903 | 47,653 | 55,111 |
| Non-controlling interests | 174 | 134 | 144 |
| Total equity | 57,076 | 47,787 | 55,255 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Financial non-current liabilities 3 | 2,594 | 2,661 | 2,714 |
| Lease liabilities | 6,794 | 6,408 | 6,328 |
| Pensions | 2,245 | 4,377 | 2,891 |
| Deferred tax liabilities | 2,432 | 1,636 | 1,943 |
| Total non-current liabilities | 14,065 | 15,083 | 13,876 |
| Current liabilities | |||
| Financial current liabilities 3 | 5,897 | 6,000 | 4,854 |
| Lease liabilities | 924 | 854 | 953 |
| Tax liabilities | 262 | 334 | 388 |
| Current provisions | 10,145 | 10,625 | 10,368 |
| Contract liabilities | 27,183 | 23,109 | 24,059 |
| Trade and other payables | 41,420 | 40,668 | 41,840 |
| Total current liabilities | 85,832 | 81,589 | 82,462 |
| TOTAL EQUITY AND LIABILITIES | 156,973 | 144,459 | 151,593 |
| of which interest-bearing financial liabilities | 15,951 | 15,786 | 14,699 |
| of which interest-bearing pensions and provisions | 2,245 | 4,377 | 2,891 |
| Total interest-bearing liabilities | 18,197 | 20,163 | 17,590 |
| 1 Of which shares and participations | 39 | 38 | 38 |
| 2 Current-asset properties | |||
| Commercial Property Development | 42,227 | 34,021 | 35,814 |
| Residential Development | 23,342 | 20,893 | 22,660 |
| 3 Items regarding non-interest-bearing unrealized changes in derivatives/financial instruments are included in the following amounts: | |||
| Financial non-current assets | 2 | 0 | 0 |
| Financial current assets | 126 | 179 | 99 |
| Financial non-current liabilities | 0 | 0 | 0 |
| Financial current liabilities | 259 | 137 | 150 |
| Contingent liabilities, excluding partners' share in joint operations, as at June 30, 2023 amounted to SEK 1.5 bn (Dec 31, 2022: 1.2). Skanska's obligations for partners' share of future performance in joint operations amounted to SEK 32.1 bn |
Contingent liabilities, excluding partners' share in joint operations, as at June 30, 2023 amounted to SEK 1.5 bn (Dec 31, 2022: 1.2). Skanska's obligations for partners' share of future performance in joint operations amounted to SEK 32.1 bn (Dec 31, 2022: 31.9). In the event that Skanska takes over part of the performance, Skanska's order backlog will increase accordingly. For more information see Annual and Sustainability Report 2022, Note 20B, 20C and 33.
Summary statement of changes in equity (IFRS)
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Jan-Dec 2022 |
|---|---|---|---|---|---|
| Opening balance | 53,290 | 43,837 | 55,255 | 45,465 | 45,465 |
| of which non-controlling interests | 156 | 120 | 144 | 114 | 114 |
| Dividend to shareholders | 0 | 0 | -3,081 | -4,124 | -4,124 |
| Dividend to non-controlling interests | 0 | 0 | 0 | 0 | -13 |
| Effects of equity-settled share-based payments | 118 | 104 | 246 | 213 | 471 |
| Repurchase of shares | -96 | -134 | -246 | -193 | -507 |
| Total comprehensive income attributable to | |||||
| Equity holders | 3,747 | 3,966 | 4,873 | 6,407 | 13,920 |
| Non-controlling interests | 18 | 14 | 30 | 20 | 43 |
| Closing balance | 57,076 | 47,787 | 57,076 | 47,787 | 55,255 |
| of which non-controlling interests | 174 | 134 | 174 | 134 | 144 |
Summary consolidated cash flow statement (IAS 7) (IFRS)
| Summary consolidated cash flow statement (IAS 7) (IFRS) | ||||||
|---|---|---|---|---|---|---|
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
| Cash flow from operating activities before change in working capital, according to IAS 7 |
955 | 623 | 1,738 | 828 | 5,206 | 4,297 |
| Cash flow from change in working capital, according to IAS 7 | -1,972 | -495 | -4,689 | -2,682 | -5,824 | -3,816 |
| Net investments in property, plant and equipment and intangible assets (investment properties included) |
-657 | -442 | -926 | -1,217 | -1,975 | -2,266 |
| Tax payments on sold property, plant and equipment and intangible assets |
-9 | -9 | -14 | -16 | -35 | -37 |
| Cash flow from business operations including taxes paid according to operating cash flow |
-1,683 | -323 | -3,891 | -3,087 | -2,627 | -1,823 |
| Less net investments in property, plant and equipment and intangible assets (investment properties included) |
657 | 442 | 926 | 1,217 | 1,975 | 2,266 |
| Less tax payments on sold property, plant and equipment and intangible assets |
9 | 9 | 14 | 16 | 35 | 37 |
| Cash flow from operating activities, according to IAS 7 | -1,017 | 128 | -2,951 | -1,854 | -617 | 480 |
| Cash flow from net strategic divestments(+)/ investments(-) accor ding to operating cash flow |
20 | 15 | 40 | 25 | 212 | 197 |
| Net investments in property, plant and equipment and intangible assets (investment properties included) |
-657 | -442 | -926 | -1,217 | -1,975 | -2,266 |
| Increase and decrease in interest-bearing receivables | 1,410 | -1,753 | 3,597 | 5,662 | 3,961 | 6,026 |
| Taxes paid on sold property, plant and equipment and intangible assets | -9 | -9 | -14 | -16 | -35 | -37 |
| Cash flow from investing activities, according to IAS 7 | 764 | -2,189 | 2,697 | 4,454 | 2,163 | 3,920 |
| Cash flow from financing operations according to operating cash flow statement |
-118 | -193 | -233 | -232 | -442 | -441 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities |
1,624 | 1,771 | 3,910 | 5,945 | 3,503 | 5,538 |
| Increase and decrease in interest-bearing receivables | -1,410 | 1,753 | -3,597 | -5,662 | -3,961 | -6,026 |
| Dividend etc. 1 | -3,177 | -4,258 | -3,327 | -4,317 | -3,655 | -4,645 |
| Cash flow from financing activities, according to IAS 7 | -3,082 | -926 | -3,247 | -4,266 | -4,554 | -5,574 |
| Cash flow for the period | -3,335 | -2,987 | -3,501 | -1,666 | -3,008 | -1,173 |
| 1 Of which repurchases of shares | -96 | -134 | -246 | -193 | -560 | -507 |
Operating cash flow (IFRS), supplementary information
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Construction | ||||||
| Cash flow from business operations | 1,977 | 1,977 | 3,609 | 3,339 | 8,442 | 8,172 |
| Change in working capital | -1,013 | -858 | -1,630 | -1,562 | -1,725 | -1,657 |
| Net divestments(+)/investments(-) | -564 | -372 | -1,063 | -594 | -2,112 | -1,643 |
| Total Construction | 400 | 747 | 917 | 1,183 | 4,605 | 4,871 |
| Residential Development | ||||||
| Cash flow from business operations | -254 | -235 | -510 | -449 | -601 | -540 |
| Change in working capital | -292 | 347 | 721 | -781 | 1,564 | 62 |
| Net divestments(+)/investments(-) | 689 | -659 | 337 | -1,090 | 161 | -1,267 |
| Cash flow adjustment | 0 | 0 | 0 | 0 | 205 | 205 |
| Total Residential Development | 143 | -546 | 548 | -2,320 | 1,329 | -1,540 |
| Commercial Property Development | ||||||
| Cash flow from business operations | -142 | -509 | -271 | -954 | -544 | -1,227 |
| Change in working capital | -73 | 369 | -237 | 268 | -368 | 137 |
| Net divestments(+)/investments(-) | -1,526 | 111 | -4,260 | 995 | -3,161 | 2,094 |
| Cash flow adjustment | -64 | 238 | -17 | 402 | -156 | 263 |
| Total Commercial Property Development | -1,804 | 210 | -4,785 | 711 | -4,229 | 1,267 |
| Investment Properties | ||||||
| Cash flow from business operations | 31 | 8 | 61 | 7 | 82 | 29 |
| Change in working capital | -4 | -5 | 18 | 20 | 44 | 47 |
| Net divestments(+)/investments(-) | -2 | 0 | -3 | -748 | -2,924 | -3,668 |
| Total Investment Properties | 25 | 3 | 75 | -720 | -2,797 | -3,593 |
| Central and Eliminations | ||||||
| Cash flow from business operations | 39 | -183 | 191 | -224 | -133 | -548 |
| Change in working capital | -33 | -53 | 9 | -287 | 187 | -108 |
| Net divestments(+)/investments(-) | 254 | -57 | 510 | -523 | 486 | -546 |
| of which PPP-portfolio | 258 | -47 | 518 | -499 | 470 | -547 |
| Total Central and Eliminations | 260 | -293 | 709 | -1,034 | 540 | -1,203 |
| Total cash flow from business operations | 1,652 | 1,057 | 3,080 | 1,718 | 7,247 | 5,885 |
| Total change in working capital | -1,415 | -199 | -1,119 | -2,342 | -298 | -1,520 |
| Total net divestments(+)/investments(-) | -1,150 | -977 | -4,479 | -1,960 | -7,550 | -5,030 |
| Total cash flow adjustment | -64 | 238 | -17 | 402 | 49 | 468 |
| Cash flow from business operations before taxes paid | -977 | 121 | -2,535 | -2,181 | -552 | -198 |
| Taxes paid in business operations | -706 | -444 | -1,356 | -906 | -2,075 | -1,625 |
| Cash flow from business operations including taxes paid | -1,683 | -323 | -3,891 | -3,087 | -2,627 | -1,823 |
| Net interest items, other net financial items and amortization of lease | ||||||
| liabilities | -152 | -247 | -298 | -297 | -566 | -565 |
| Taxes paid in financing operations | 33 | 54 | 66 | 65 | 125 | 124 |
| Cash flow from financing operations | -118 | -193 | -233 | -232 | -442 | -441 |
| Operating cash flow from operations | -1,802 | -516 | -4,124 | -3,319 | -3,069 | -2,263 |
| Net strategic divestments(+)/investments(-) | 20 | 15 | 40 | 25 | 212 | 197 |
| Dividend etc.1 | -3,177 | -4,258 | -3,327 | -4,317 | -3,655 | -4,645 |
| Cash flow before change in interest-bearing receivables and liabilities |
-4,959 | -4,759 | -7,411 | -7,611 | -6,511 | -6,711 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities |
1,624 | 1,771 | 3,910 | 5,945 | 3,503 | 5,538 |
| Cash flow for the period | -3,335 | -2,987 | -3,501 | -1,666 | -3,008 | -1,173 |
| Cash and cash equivalents at the beginning of the period | 9,839 | 12,323 | 10,014 | 10,947 | 9,474 | 10,947 |
| Exchange rate differences in cash and cash equivalents | 106 | 138 | 97 | 193 | 144 | 240 |
| Cash and cash equivalents at the end of the period | 6,610 | 9,474 | 6,610 | 9,474 | 6,610 | 10,014 |
| 1 Of which repurchases of shares | -96 | -134 | -246 | -193 | -560 | -507 |
<-- PDF CHUNK SEPARATOR -->
Group net divestments(+)/investments(-) (IFRS)
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| OPERATIONS - INVESTMENTS | ||||||
| Investment properties | -2 | 0 | -3 | 0 | -4 | -1 |
| Intangible assets | -3 | -7 | -8 | -12 | -20 | -24 |
| Property, plant and equipment | -677 | -495 | -1,274 | -887 | -2,625 | -2,238 |
| Shares and participations | -317 | -56 | -320 | -521 | -495 | -696 |
| Current-asset properties | -5,101 | -6,640 | -10,371 | -11,379 | -21,600 | -22,609 |
| of which Residential Development | -1,965 | -3,017 | -4,462 | -5,078 | -9,759 | -10,375 |
| of which Commercial Property Development | -3,136 | -3,623 | -5,909 | -6,301 | -11,841 | -12,233 |
| Investments in operations | -6,100 | -7,196 | -11,976 | -12,799 | -24,744 | -25,567 |
| Total Investments | -6,100 | -7,196 | -11,976 | -12,799 | -24,744 | -25,567 |
| OPERATIONS - DIVESTMENTS | ||||||
| Intangible assets | 1 | 0 | 1 | 0 | 17 | 15 |
| Property, plant and equipment | 83 | 115 | 160 | 193 | 443 | 476 |
| Shares and participations | 258 | 0 | 518 | 9 | 709 | 201 |
| Current-asset properties | 4,608 | 6,105 | 6,818 | 10,637 | 16,026 | 19,844 |
| of which Residential Development | 2,959 | 2,350 | 5,106 | 4,186 | 10,177 | 9,257 |
| of which Commercial Property Development | 1,649 | 3,755 | 1,712 | 6,451 | 5,849 | 10,587 |
| Divestments in operation | 4,950 | 6,220 | 7,497 | 10,840 | 17,194 | 20,537 |
| STRATEGIC DIVESTMENTS | ||||||
| Businesses | 20 | 15 | 40 | 25 | 212 | 197 |
| Strategic divestments | 20 | 15 | 40 | 25 | 212 | 197 |
| Total divestments | 4,970 | 6,235 | 7,537 | 10,865 | 17,406 | 20,734 |
| TOTAL NET DIVESTMENTS(+)/INVESTMENTS(-) | -1,130 | -961 | -4,439 | -1,935 | -7,338 | -4,833 |
| Depreciation, non-current assets | -690 | -673 | -1,353 | -1,355 | -2,712 | -2,714 |
Capital employed in Project Development and Investment Properties (IFRS)
| SEK M | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 |
|---|---|---|---|
| Residential Development | 16,495 | 16,091 | 16,346 |
| Commercial Property Development | 45,498 | 36,854 | 38,547 |
| Investment Properties | 3 694 | 753 | 3 733 |
| Total in Project Development and Investment Properties | 65,687 | 53,698 | 58,626 |
Parent company1
The parent company's revenue consists mainly of amounts billed to Group companies. The balance sheet consists mainly of shares in Group companies, intra-Group receivables and equity. The parent company does not report any significant events during the period.
Summary income statement (RFR2)
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 |
|---|---|---|---|---|
| Revenue | 373 | 212 | 514 | 346 |
| Selling and administrative expenses | -323 | -186 | -501 | -338 |
| Operating income | 50 | 26 | 13 | 8 |
| Net financial items | 10,320 | 10,004 | 10,397 | 10,005 |
| Income after financial items | 10,370 | 10,030 | 10,410 | 10,013 |
| Income taxes | -24 | -7 | -33 | -4 |
| Profit for the period | 10,346 | 10,023 | 10,377 | 10,009 |
| Total comprehensive income | 10,346 | 10,023 | 10,377 | 10,009 |
Summary balance sheet (RFR2)
| SEK M | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 |
|---|---|---|---|
| ASSETS | |||
| Intangible non-current assets | 2 | 2 | 1 |
| Property, plant and equipment | 22 | 0 | 0 |
| Financial non-current assets 2 | 30,466 | 23,268 | 23,627 |
| Total non-current assets | 30,490 | 23,270 | 23,628 |
| Current receivables | 265 | 149 | 164 |
| Total current assets | 265 | 149 | 164 |
| TOTAL ASSETS | 30,755 | 23,419 | 23,792 |
| EQUITY AND LIABILITIES | |||
| Equity 3 | 30,261 | 23,034 | 23,195 |
| Provisions | 178 | 226 | 213 |
| Non-current interest-bearing liabilities 2 | 64 | 64 | 276 |
| Current liabilities | 252 | 95 | 108 |
| TOTAL EQUITY AND LIABILITIES | 30,755 | 23,419 | 23,792 |
1 As a parent company in an IFRS-group, Skanska AB applies RFR2 in its accounting.
The Parent Company's contingent liabilities totaled SEK 153.7 bn on June 30, 2023 (Dec 31, 2022: 142.8), of which SEK 129.0 bn (Dec 31, 2022: 122.3) were related to obligations on behalf of Group companies. Other obligations, SEK 24.7 bn (Dec 31, 2022: 20.5), were related to commitments to outside parties of which SEK 15.2 bn (Dec 31, 2022: 11.9) relates to partners' future performance in the Group's joint operations.
2 Of which SEK 11,942 M (Dec 31, 2022: 12,045) were shares in Group companies, SEK 18,364 M (Dec 31, 2022: 11,422) intra-Group receivables and SEK 64 M (Dec 31, 2022: 276) intra-Group liabilities. 3 During the year SEK 10 250 M (Dec 31, 22; 10,000) in dividend has been received from Group companies.
Share data
| Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Jan-Dec 2022 | |
|---|---|---|---|---|---|
| Earnings per share according to segment reporting, SEK 1 | 2.96 | 4.61 | 4.00 | 8.24 | 18.62 |
| Earnings per share, SEK 1 | 4.72 | 4.28 | 6.16 | 6.61 | 20.04 |
| Earnings per share after dilution, SEK 2 | 4.69 | 4.25 | 6.11 | 6.57 | 19.90 |
| Equity per share, SEK 3 | 138.53 | 115.63 | 134.05 | ||
| Adjusted equity per share, SEK 4 | 170.57 | 152.10 | 167.77 | ||
| Average number of shares outstanding | 410,998,216 | 412,352,689 | 412,037,581 | ||
| Average number of shares outstanding after dilution | 414,077,670 | 415,143,684 | 414,922,620 | ||
| Average dilution, % | 0.74 | 0.67 | 0.70 | ||
| Number of shares, at balance sheet date | 419,903,072 | 419,903,072 | 419,903,072 | ||
| Average price, repurchased shares, SEK | 145.85 | 143.41 | 144.79 | ||
| Number of Class B shares repurchased | 32,780,728 | 29,433,728 | 31,320,728 | ||
| of which repurchased during the year | 640,000 | 777,000 | 1,460,000 | 1,037,000 | 2,924,000 |
| Number of shares in Skanska's own custody | 9,141,570 | 7,788,654 | 8,771,931 | ||
| Number of shares outstanding | 410,761,502 | 412,114,418 | 411,131,141 |
1 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
Five-year Group financial summary
| SEK M | Rolling 12 months | Jan-Dec 2022 | Jan-Dec 2021 | Jan-Dec 2020 | Jan-Dec 2019 |
|---|---|---|---|---|---|
| Revenue | 153,771 | 161,602 | 147,576 | 158,606 | 176,782 |
| Operating income | 6,773 | 9,297 | 9,832 | 11,860 | 7,828 |
| Profit for the period | 5,956 | 7,702 | 8,188 | 8,942 | 6,372 |
| Earnings per share, SEK | 14.39 | 18.62 | 19.80 | 21.65 | 15.46 |
| Return on capital employed, % | 10.3 | 14.1 | 15.9 | 20.3 | 15.1 |
| Return on equity, % | 11.1 | 15.8 | 20.1 | 25.1 | 21.4 |
| Operating margin, % | 4.4 | 5.8 | 6.7 | 7.5 | 4.4 |
| Return on capital employed accoding to IFRS, % | 13.9 | 15.2 | 13.5 | 21.5 | 14.3 |
| Cash flow per share according to IFRS, SEK 1 | -15.86 | -16.29 | 1.81 | 31.57 | 3.28 |
1 Cash flow before change in interest-bearing receivables and liabilites divided by the average number of shares outstanding.
Exchange rates for the most important currencies
| Average exchange rates | ||||||
|---|---|---|---|---|---|---|
| SEK | Jan-Jun 2023 | Jan-Jun 2022 | Jan-Dec 2022 | |||
| US dollar | 10.49 | 9.59 | 10.12 | |||
| British pound | 12.93 | 12.44 | 12.46 | |||
| Norwegian krone | 1.00 | 1.05 | 1.05 | |||
| Euro | 11.33 | 10.47 | 10.63 | |||
| Czech koruna | 0.48 | 0.42 | 0.43 | |||
| Polish zloty | 2.45 | 2.26 | 2.27 |
| Exchange rates on the closing day | ||||||||
|---|---|---|---|---|---|---|---|---|
| Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 | ||||||
| 10.90 | 10.26 | 10.37 | ||||||
| 13.75 | 12.45 | 12.49 | ||||||
| 1.01 | 1.03 | 1.05 | ||||||
| 11.81 | 10.71 | 11.08 | ||||||
| 0.50 | 0.43 | 0.46 | ||||||
| 2.65 | 2.29 | 2.36 |
2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding after dilution.
3 Equity attributable to equity holders divided by the number of shares outstanding.
4 Adjusted equity diveded by the number of shares outstanding.
Construction
Revenue and earnings
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Revenue | 40,584 | 39,712 | 78,107 | 73,099 | 161,013 | 156,004 |
| Gross income | 3,051 | 2,950 | 5,748 | 5,219 | 12,797 | 12,268 |
| Selling and administrative expenses | -1,661 | -1,596 | -3,321 | -3,113 | -6,742 | -6,534 |
| Income from joint ventures and associated companies | 0 | 6 | -4 | 10 | 22 | 36 |
| Operating income | 1,391 | 1,360 | 2,424 | 2,116 | 6,077 | 5,770 |
| Investments | -648 | -486 | -1,224 | -868 | -2,565 | -2,210 |
| Divestments | 104 | 130 | 201 | 299 | 665 | 764 |
| Net divestments(+)/investments(-) | -544 | -357 | -1,023 | -569 | -1,900 | -1,446 |
| Gross margin, % | 7.5 | 7.4 | 7.4 | 7.1 | 7.9 | 7.9 |
| Selling and administrative expenses, % | -4.1 | -4.0 | -4.3 | -4.3 | -4.2 | -4.2 |
| Operating margin % | 3.4 | 3.4 | 3.1 | 2.9 | 3.8 | 3.7 |
| Order bookings, SEK bn | 63.2 | 37.3 | 89.0 | 67.2 | 184.4 | 162.7 |
| Order backlog, SEK bn | 250.3 | 215.5 | 250.3 | 215.5 | 229.8 | |
| Average number of employees | 25,576 | 26,741 | 25,576 | 26,741 | 26,892 |
Revenue
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Nordics | 14,727 | 15,911 | 28,978 | 29,490 | 58,956 | 59,468 |
| of which Sweden | 8,407 | 9,243 | 16,214 | 16,590 | 34,073 | 34,450 |
| Europe | 7,219 | 6,897 | 13,164 | 12,147 | 28,014 | 26,997 |
| USA | 18,637 | 16,904 | 35,965 | 31,461 | 74,043 | 69,539 |
| Total | 40,584 | 39,712 | 78,107 | 73,099 | 161,013 | 156,004 |
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Nordics | 549 | 549 | 948 | 924 | 2,400 | 2,377 |
| of which Sweden | 251 | 310 | 432 | 481 | 1,373 | 1,423 |
| Europe | 189 | 256 | 184 | 238 | 709 | 762 |
| USA | 654 | 555 | 1,292 | 954 | 2,968 | 2,630 |
| Total | 1,391 | 1,360 | 2,424 | 2,116 | 6,077 | 5,770 |
Operating income Operating margin, %
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| 3.7 | 3.5 | 3.3 | 3.1 | 4.1 | 4.0 |
| 3.0 | 3.3 | 2.7 | 2.9 | 4.0 | 4.1 |
| 2.6 | 3.7 | 1.4 | 2.0 | 2.5 | 2.8 |
| 3.5 | 3.3 | 3.6 | 3.0 | 4.0 | 3.8 |
| 3.4 | 3.4 | 3.1 | 2.9 | 3.8 | 3.7 |
| SEK M | Jun 30, 2023 |
Jun 30, 2022 |
Dec 31, 2022 |
|---|---|---|---|
| Nordics | 83,772 | 69,297 | 69,496 |
| of which Sweden | 32,770 | 35,121 | 33,085 |
| Europe | 41,500 | 41,921 | 40,624 |
| USA | 125,030 | 104,234 | 119,651 |
| Total | 250,303 | 215,452 | 229,771 |
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| 31,651 | 16,528 | 43,458 | 28,437 | 72,854 | 57,832 |
| 8,942 | 9,500 | 15,895 | 18,100 | 31,755 | 33,960 |
| 7,557 | 7,720 | 10,179 | 13,269 | 23,199 | 26,289 |
| 23,944 | 13,022 | 35,362 | 25,531 | 88,375 | 78,544 |
| 63,152 | 37,270 | 88,999 | 67,237 | 184,427 | 162,665 |
Order backlog Order bookings Book-to build, R12-m, %
| Jun 30, 2023 |
Jun 30, 2022 |
Dec 31, 2022 |
|---|---|---|
| 124 | 95 | 97 |
| 93 | 101 | 99 |
| 83 | 88 | 97 |
| 119 | 96 | 113 |
| 115 | 95 | 104 |
Residential Development
Revenue and earnings
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Revenue | 1,649 | 2,926 | 2,235 | 6,500 | 4,487 | 8,751 |
| Gross income | 226 | 539 | 135 | 1,156 | 653 | 1,674 |
| Selling and administrative expenses | -178 | -207 | -401 | -380 | -805 | -783 |
| Operating income | 49 | 332 | -266 | 777 | -152 | 891 |
| Operating margin, % | 2.9 | 11.3 | neg | 11.9 | neg | 10.2 |
| Investments | -2,270 | -3,021 | -4,769 | -5,298 | -10,086 | -10,615 |
| Divestments | 2,959 | 2,362 | 5,106 | 4,208 | 10,247 | 9,349 |
| Net divestments(+)/investments(-) | 689 | -659 | 337 | -1,090 | 161 | -1,267 |
| Capital employed, SEK bn | 16.5 | 16.1 | 16.5 | 16.1 | 16.3 | |
| Return on capital employed, % 1 | 11.0 | 11.0 | 0.2 | 6.8 | ||
| Average number of employees | 540 | 576 | 540 | 576 | 565 |
1 Rolling 12 months. For definition see page 19.
Revenue
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Nordics | 1,176 | 2,422 | 1,604 | 5,651 | 3,279 | 7,326 |
| of which Sweden | 377 | 1,236 | 474 | 3,308 | 640 | 3,474 |
| Europe | 473 | 504 | 631 | 849 | 1,208 | 1,425 |
| Total | 1,649 | 2,926 | 2,235 | 6,500 | 4,487 | 8,751 |
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Nordics | 4 | 258 | -264 | 655 | -205 | 715 |
| of which Sweden | -3 | 119 | -284 | 391 | -332 | 343 |
| Europe | 45 | 74 | -1 | 121 | 53 | 176 |
| Total | 49 | 332 | -266 | 777 | -152 | 891 |
1 Development gain only. Construction margin reported under Construction.
Operating income 1 Operating margin, % 1
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| 0.3 | 10.7 | neg | 11.6 | neg | 9.8 |
| neg | 9.6 | neg | 11.8 | neg | 9.9 |
| 9.4 | 14.6 | neg | 14.3 | 4.4 | 12.3 |
| 2.9 | 11.3 | neg | 11.9 | neg | 10.2 |
Homes started Homes sold
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Nordics | 241 | 601 | 529 | 1,305 | 1,178 | 1,954 |
| of which Sweden | 135 | 453 | 377 | 1,025 | 449 | 1,097 |
| Europe | 0 | 356 | 0 | 458 | 393 | 851 |
| Total | 241 | 957 | 529 | 1,763 | 1,571 | 2,805 |
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| 164 | 493 | 227 | 1,229 | 492 | 1,494 |
| 61 | 371 | 86 | 922 | 95 | 931 |
| 179 | 187 | 248 | 330 | 476 | 558 |
| 343 | 680 | 475 | 1,559 | 968 | 2,052 |
Homes under construction
| Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 | |
|---|---|---|---|
| Nordics | 4,669 | 5,074 | 5,146 |
| of which Sweden | 3,063 | 3,551 | 3,327 |
| Europe | 1,685 | 1,905 | 1,869 |
| Total | 6,354 | 6,979 | 7,015 |
Completed unsold, number of homes
| Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 |
|---|---|---|
| 292 | 52 | 108 |
| 175 | 25 | 53 |
| 14 | 20 | 22 |
| 306 | 72 | 130 |
Homes under construction of which sold, %
| Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 |
|---|---|---|
| 55 | 68 | 62 |
| 53 | 65 | 62 |
| 65 | 65 | 56 |
| 58 | 67 | 60 |
Commercial Property Development
Revenue and earnings
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Revenue | 857 | 5,666 | 1,124 | 10,505 | 4,894 | 14,276 |
| of which from divestment of properties | 627 | 5,513 | 717 | 10,192 | 4,119 | 13,594 |
| Gross income | 233 | 1,082 | 292 | 2,128 | 2,021 | 3,857 |
| Selling and administrative expenses | -247 | -251 | -445 | -442 | -1,001 | -999 |
| Income from joint ventures and associated companies | -1 | 3 | -4 | 5 | 156 | 165 |
| Operating income | -15 | 834 | -157 | 1,690 | 1,176 | 3,023 |
| of which from divestment of properties 1 | 171 | 1,084 | 217 | 2,157 | 1,900 | 3,839 |
| of which writedowns/reversal of writedowns | 0 | 0 | -18 | -30 | -31 | -43 |
| 1 Additional gains included in Eliminations | 19 | 19 | 40 | 82 | 70 | 112 |
| Investments | -3,175 | -3,644 | -5,981 | -6,327 | -11,948 | -12,294 |
| Divestments | 1,649 | 3,755 | 1,721 | 7,322 | 8,787 | 14,389 |
| Net divestments(+)/investments(-) | -1,526 | 111 | -4,260 | 995 | -3,161 | 2,094 |
| Capital employed, SEK bn | 45.5 | 36.9 | 45.5 | 36.9 | 38.5 | |
| Return on capital employed, % 2 | 10.9 | 10.9 | 3.1 | 8.7 | ||
| Average number of employees | 432 | 445 | 432 | 445 | 437 |
2 Rolling 12 months. For definition see page 19.
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Nordics | 742 | 4,262 | 869 | 6,166 | 4,323 | 9,620 |
| Europe | 65 | 1,324 | 156 | 2,856 | 299 | 2,999 |
| USA | 49 | 79 | 100 | 1,483 | 272 | 1,656 |
| Total | 857 | 5,666 | 1,124 | 10,505 | 4,894 | 14,276 |
| SEK M | Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Nordics | 116 | 612 | 83 | 1,117 | 1,492 | 2,526 |
| Europe | -70 | 274 | -122 | 615 | -137 | 599 |
| USA | -61 | -52 | -118 | -41 | -178 | -101 |
| Total | -15 | 834 | -157 | 1,690 | 1,176 | 3,023 |
Homes for rent started Homes for rent sold
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|
|---|---|---|---|---|---|---|
| Nordics | 0 | 0 | 0 | 0 | 264 | 264 |
| USA | 0 | 0 | 0 | 0 | 324 | 324 |
| Total | 0 | 0 | 0 | 0 | 588 | 588 |
Homes for rent under construction
| Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 | |
|---|---|---|---|
| Nordics | 1,322 | 1,194 | 1,348 |
| USA | 1,009 | 685 | 1,009 |
| Total | 2 331 | 1 879 | 2 357 |
Revenue of which from divestments
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| 626 | 4,200 | 673 | 6,028 | 3,947 | 9,302 |
| 0 | 1,276 | 43 | 2,754 | 94 | 2,805 |
| 0 | 36 | 0 | 1,410 | 78 | 1,487 |
| 627 | 5,513 | 717 | 10,192 | 4,119 | 13,594 |
Operating income of which from divestments
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| 169 | 743 | 191 | 1,344 | 1,690 | 2,843 |
| 1 | 339 | 26 | 724 | 205 | 903 |
| 0 | 2 | 0 | 88 | 5 | 93 |
| 171 | 1,084 | 217 | 2,157 | 1,900 | 3,839 |
| Apr-Jun 2023 |
Apr-Jun 2022 |
Jan-Jun 2023 |
Jan-Jun 2022 |
Rolling 12 months |
Jan-Dec 2022 |
|---|---|---|---|---|---|
| 0 | 0 | 0 | 0 | 202 | 202 |
| 0 | 0 | 0 | 0 | 0 | 0 |
| 0 | 0 | 0 | 0 | 202 | 202 |
Capital employed
| SEK M | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 |
|---|---|---|---|
| Nordics | 15,643 | 13,972 | 13,992 |
| Europe | 10,884 | 9,896 | 9,087 |
| USA | 18,971 | 12,985 | 15,467 |
| Total | 45,498 | 36,854 | 38,547 |
Investment Properties
Revenue and earnings
| SEK M | Apr-Jun 2023 | Apr-Jun 2022 | Jan-Jun 2023 | Jan-Jun 2022 | Rolling 12 months | Jan-Dec 2022 |
|---|---|---|---|---|---|---|
| Revenue | 45 | 10 | 86 | 10 | 116 | 40 |
| Operating net | 32 | 8 | 63 | 8 | 86 | 30 |
| Selling and administrative expenses | -1 | 0 | -3 | -1 | -4 | -2 |
| Change in property value | -25 | 0 | -25 | 26 | 61 | 112 |
| Operating income | 6 | 8 | 36 | 33 | 143 | 140 |
| Investments | -2 | 0 | -3 | -748 | -2,924 | -3,668 |
| Divestments | 0 | 0 | 0 | 0 | 0 | 0 |
| Net divestments(+)/investments(-) | -2 | 0 | -3 | -748 | -2,924 | -3,668 |
| Capital employed | 3,694 | 753 | 3,694 | 753 | 3,733 | |
| Property value | 3,736 | 766 | 3,736 | 766 | 3,758 | |
| Return on capital employed, % 1 | 11.7 | 11.7 | 5.5 | 13.6 | ||
| Economic occupancy rate, % | 93 | 100 | 93 | 100 | 86 | |
| Average valuation yield, % | 4.1 | 4.0 | 4.1 | 4.0 | 3.9 |
1 Rolling 12 months. For definition see page 19.
Properties
| Location | Leasable area, sqm |
Annual rental value, SEK M |
Economic occupancy rate, % |
Property value, SEK M |
Environmental certification, % |
|---|---|---|---|---|---|
| Malmö | 23,110 | 82 | 98 | 1,353 | 100 |
| Stockholm | 28,992 | 122 | 90 | 2,383 | 100 |
| Total | 52,102 | 205 | 93 | 3,736 | 100 |
PPP-portfolio value
Unrealized development gain in PPP-portfolio
| SEK bn | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2022 |
|---|---|---|---|
| Present value of cash flow from projects | 2.4 | 2.6 | 2.7 |
| Present value of remaining investments | 0.0 | -0.2 | 0.0 |
| Net present value of projects | 2.4 | 2.4 | 2.7 |
| Carrying amount before Cash flow hedge / Carrying amount | -1.4 | -2.0 | -2.2 |
| Unrealized development gain | 1.0 | 0.4 | 0.5 |
| Cash flow hedge | 0.1 | 0.1 | 0.1 |
| Effect in unrealized equity 1 | 1.1 | 0.5 | 0.6 |
1 Tax effects not included.
About Skanska
Over 135 years in the making, we are one of the world's largest project development and construction companies. We operate across select markets in the Nordics, Europe and the USA. Together with our customers and the collective expertise of our 28,000 employees, we create innovative and sustainable solutions that support healthy living beyond our lifetime.
Skanska's home markets
Nordøyvegen, Møre and Romsdal county, Norway
FV 659 Nordøyvegen, a complex road, bridge and tunnel project connecting the northern islands of Ålesund to the Norwegian mainland, has been described as Norway's most spectacular construction project. The contract was signed with Norwegian Public Road Authority (NPRA) in 2018 and construction started in 2019. Three tunnels were built simultaneously. Bridges had to be constructed in challenging weather conditions. Yet parts of the project were in use up to 18 months ahead of schedule. In total, 13 kilometers of road under the sea, divided into three tunnels, as well as 8 kilometers of road with three bridges were built. The most important impact is the positive effect on the local community: by connecting the islands and to the mainland, Nordøyvegen opens up opportunities for housing and jobs for the islanders and their neighbors. Underlining the fact that every decision impacts, the project team made many choices that reduced the environmental impact. These included reusing and choosing more sustainable materials, sourced from local suppliers; co-operating closely with local NGOs to collect plastic waste, which resulted in zero waste spillage. The project was certified with BREEAM Infrastructure, level Very Good. The project was completed and handed over in 2022.
Skanska AB www.group.skanska.com/investors
For further information, please contact:
Magnus Persson, Executive Vice President and CFO, Skanska AB, tel +46 10 448 8900 Antonia Junelind, Senior Vice President, Investor Relations, Skanska AB, tel +46 10 448 6261 Karolina Cederhage, Senior Vice President, Communications, Skanska AB, tel +46 10 448 0880 Jacob Birkeland, Head of Media Relations and Public Affairs, Skanska AB, tel +46 10 449 1957
This report will also be presented via a telephone conference and a audiocast at 10:00 CEST on July 21, 2023. The telephone conference will be webcasted live at www.skanska.com/investors, where a recording of the conference will also be available later. To participate in the telephone conference, please dial +46 (0)8 5051 00 31, or +44 (0)207 107 06 13, or +1 (1) 631 570 56 13. This and previous releases can also be found at www.group.skanska.com/investors.
This is information that Skanska AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the Senior Vice President Investor Relations set out above, at 07:30 CEST on July 21, 2023.
Enumerated amounts presented in tables and statements may not always agree with the calculated sum of the related line items due to rounding differences. The aim is for each line item to agree with its source and therefore there may be rounding differences affecting the total when adding up the presented line items.